Understanding the Federal Universal Service Fund, Sandy Beaches Software Podcast

Telecom Reseller / Technology Reseller News

Understanding the Federal Universal Service Fund, Podcast ,Three Methods for Determining FUSF Contribution “It's not a tax. It's a fee,” Jeff Lytle, of Sandy Beaches Software. “And it's assessed on telecommunications companies.” According to the FCC, “Prior to the Telecommunications Act of 1996, the Universal Service Fund (USF) operated as a mechanism by which interstate long-distance carriers were assessed to subsidize telephone service to low-income households and high-cost areas. The Communications Act of 1934 stated that all people in the United States shall have access to rapid, efficient, nationwide communications service with adequate facilities at reasonable charges. The Telecommunications Act of 1996 expanded the traditional definition of universal service - affordable, nationwide telephone service to include among other things rural health care providers and eligible schools and libraries.” In this podcast, Jeff, whose company and career have been dedicated to helping organizations stay in compliance with the FUSF, brings us up to date on what that challenge looks like today. “Every telecom company in the United States, VoIP or otherwise, contributes to the Universal Service Fund, and this funds the libraries, and hospitals. It funds the phones for poor people or the undeserved and allows them to have communication services. the fund was created in 2000 and at that time the rate was 5.7 percent and now it's grown to where it's 35.8 percent of the build revenue. Now, when the FCC created this back in 2000, they gave three different methods for calculating your contribution rate. It's called a contribution. It's not a tax, dog It's a contribution you're making to fund these services. The government's But if you don't pay it, you do get heavy fines.” When a tax is not a tax, and fee might not be a fee As we learn in this podcast, the FUSF is not so cut and dry. As a specialist on this matter, Jeff outlines how companies can be looking at a less steep fee. But you will need a deep understanding of this matter, and likely, specialized help. Jeff and his team at Sandy Beaches Software are headquartered in Oklahoma City, a city noted for sunshine, but often beaches. We learn that their made (and supported) in the USA offer, also represents an advantage. “If you were working in all 50 states and had to file for every single jurisdiction, you'd have 48,000 returns per year that you would be filing. You need a compliance company at that point. When you're only working in one, two states, a lot of times you can do it on your own and you don't need that third party. But your billing company works in between all of these folks to make that happen. You need a solid billing company that's experienced with the tax piece to get it right.” Visit www.sandybeachessoftware.com